ABSTRACT

Global Oil and Gas Industry operations encounter unique operational and business environments while developing greenhouse gas (GHG) management strategies. In all cases companies need consistent, reliable, and credible methodologies to derive GHG emission estimates, along with a common framework for defining the boundaries for reporting emissions.

Being cognizant of the need for accurate and industry-relevant GHG emission estimation tools, the American Petroleum Institute (API) developed the "Compendium of Greenhouse Gas Emissions Estimation Methodologies for the Oil & Gas Industry" (API Compendium). Over the past couple of years, API has engaged in focused activities to promote harmonization of methodologies worldwide in order to attain comparability of reported GHG emissions. In addition, API provides the SANGEA System as a tool that is consistent with the API Compendium methodologies.1

Moreover, API in collaboration with the International Petroleum Industry Environmental Conservation Association (IPIECA) and the International Association of Oil and Gas Producers (OGP), developed a consistent global framework for accounting and reporting of GHG emissions by the industry sector, titled the "Petroleum Industry GHG Reporting Guidelines" (Industry Guidelines).

The paper will provide highlights of the Industry Guidelines, the API Compendium and showcase some of the key features of the SANGEA System to track and manage GHG emissions and energy consumption information. By working towards a consistent standard for greenhouse gas emissions estimating, the oil and gas industry sector improves its credibility and provides a foundation for future cooperative efforts among petroleum industry companies, regulators and other industries to address this important issue.1 API neither endorses nor recommends any specific data management software for GHG emissions inventory development.

INTRODUCTION

In developing an emissions inventory, a reporter must consider how emissions will be reported and how emissions will be calculated. The international oil and gas industry has developed resources to help promote consistency in estimating and reporting greenhouse gas (GHG) emissions. As discussed below, the Petroleum Industry Guidelines for Reporting Greenhouse Gas Emissions1 (Industry Guidelines) was developed to help promote consistency in defining the inventory and reporting emissions. A complementary resource, the API Compendium of Emissions Estimating Methodologies for the Oil and Gas Industry2 (API Compendium) provides methodologies to help promote consistency in calculating emissions. In addition, the SANGEA Energy and Emissions Estimating System3 or any other data management reporting tool can be used to develop an inventory that is consistent with the Inventory Guidelines and utilizes the methodologies in the API Compendium. Figure 1 graphically depicts the relationship between these resources and how they facilitate the creation of GHG emission inventories.

(Figure in full paper)

Industry Guidelines for Reporting Greenhouse Gas Emissions

Consistency in GHG emissions reporting requires common methods for addressing the accounting issues associated with inventory development, such as boundaries, baselines, and ownership. Recognizing the unique operational arrangements often associated with oil and gas industry operations, the International Petroleum Industry Environmental Conservation Association (IPIECA), the American Petroleum Institute (API), the International Association of Oil and Gas Producers (OGP), and petroleum company representatives developed the Petroleum Industry Guidelines for Reporting Greenhouse Gas Emissions1

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